TMI Blog2017 (1) TMI 681X X X X Extracts X X X X X X X X Extracts X X X X ..... by Estate Consultant certifying that Flat No. 61, Kalpataru Royale, Sion, Mumbai was lying vacant since 2009. On further asking, if this document was filed before the AO, the ld. AR of the assessee, fairly conceded that it was not filed during the assessment proceedings. We may observe that this letter is not sufficient evidence to prove that property was lying vacant since 2009 in absence of other corroborative evidence like electricity or water bills of relevant period. Thus, we instead of going merit and demerit on admissibility of this evidence are of the opinion that even this document required verification at the end of AO. On examination on computation of income and the order of AO, we find that the order passed by ld. CIT fulfil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not entitled to vacancy allowance under section 23(l)(c) although the appellant duly fulfilled the conditions laid down in section 23(1)(c) of the Income-tax Act and further by giving consequential directions to the Assessing Officer causing prejudice to the appellant. 3. Without prejudice to above, the learned Commissioner of Income-tax erred in holding that while computing taxable income, expenses incurred of ₹ 3,16,125/- on property known as Oberoi Woods held as stock-in-trade since A.Y. 2008-09 ought not to be reduced while assessing income under the head Income from Business and Profession and giving consequential directions to the Assessing Officer causing prejudice to the appellant. 4. Without prejudice to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest of Revenue. The ld. CIT revised the order of AO holding as under: i) the assessee has shown rental income of ₹ 8,97,052/- from Oberoi Accommodation, Gala etc. and the same was reduced while computing income from business and profession. The assesee had computed ₹ 60,082/- on account of Income from House Property. The assessee has also debited an amount of ₹ 3,16,125/- on account of Oberoi Woods Accommodation expenses and ₹ 5,94,851/- on account of interest on ICICI Housing Loan in the Profit and Loss Account. The above said amounts should have been added back while computing income from Business Profession as such expenditure is related to the income from House Property. ii) On further perusal of ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 5,94,000/- being interest to ICICI Home Loan was correctly debited to the P L A/c. The contention of assessee was not accepted holding that assessee has shown Oberoi Woods Accommodation Property as stock-in-trade under Schedule- K N of its balance-sheet. However, in the computation of income, the assessee has reduced the entire rental income of ₹ 8,90,572/- for separate consideration and rental income from Gala No. 432 411 has been offered under the head Income from House Property , the rental income of ₹ 5,21,441/- from Oberoi Woods Accommodation has not been offered either as Business Income or Income from House Property . Thus, the AO was directed to bring the rental income of ₹ 5,21,451/- to tax. With r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be set-aside. On the other hand, ld. DR for Revenue vehemently supported the order of ld. CIT. Ld. DR for Revenue further invited our attention to the order of AO passed u/s 143(3) of the Act and pointed out that there is no examination or discussion in respect of the various heads of the income claimed by assessee. The order passed by AO is cryptic and without application of mind which is not only erroneous but substantially prejudicial to the interest of Revenue. The assessee was claiming of set off of losses which would be reduced. 4. We have considered the rival contentions of the parties and gone through the decision of authorities below. While hearing of the appeal, the attention of ld. AR of assessee was invited on computation of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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